A Post-Mortem on 2021 Logistics Industry M&A and Investment: Vibrant Yet Pragmatic

In 2021, China responded with composure to the unprecedented changes of the past century and the ongoing pandemic, achieving outstanding results by maintaining a leading global position in both economic development and epidemic control. According to forecasts in the Economic Blue Book published by the Chinese Academy of Social Sciences, China’s economy is expected to grow by around 8% in 2021, outpacing most other major economies worldwide.

Against the backdrop of a sustained recovery in the national economy, logistics operations remained generally stable, with revenue continuing to expand. Amid an overall favorable economic environment and steady performance in the logistics sector, China’s logistics industry has seen continued robust activity in its investment and financing market, with both the number and scale of transactions rising steadily.

Data shows that only In the first half of 2021, the number of investment and financing deals in China’s logistics sector reached 90, hitting a record high and up 32% quarter-on-quarter; the total transaction value amounted to RMB 97.329 billion, a 65% increase from the previous quarter. As the financial market is often regarded as a “barometer” of the national economy, the scale of investment and financing in the logistics industry underscores the confidence that capital and the market have in its future prospects.  

According to incomplete statistics ：

In mid-January, Huolala completed the first two closing rounds of its Series F financing, totaling US$1.3 billion.

In mid-February, Aneng Logistics secured approximately US$300 million in investment.

On February 19, according to Tianyancha, Xingsheng Youxuan announced a new Series D funding round totaling US$3 billion.

On March 22, JD.com and Dada Group jointly announced that JD.com will subscribe to newly issued common shares of Dada Group for US$800 million. Upon completion of the transaction, including its existing holdings, JD.com will hold approximately 51% of Dada Group’s shares.

On April 13, ZJS Express Group announced that it had secured another round of Series B funding totaling nearly RMB 1 billion.

On May 28, JD Logistics officially listed on the Hong Kong Stock Exchange.

On June 23, Manbang Group successfully listed on the New York Stock Exchange, officially becoming the “first publicly traded company in freight digitalization.”

On June 9, China Eastern Logistics was listed on the Shanghai Stock Exchange, becoming the first publicly traded company in China’s aviation sector to undergo mixed-ownership reform.

On June 29, the international logistics online service platform “Yunquna” announced that its Series D1 round had raised a total of US$150 million.

In July, the same-city freight platform Kuagou Dache announced the completion of a new round of financing totaling nearly US$100 million.

On August 3, autonomous trucking technology and operations company Plus announced the completion of a $270 million Series B equity financing round.

In September, the Anti-Monopoly Bureau of the State Administration for Market Regulation unconditionally approved the acquisition of equity in Yimidida Supply Chain Group Co., Ltd. by Huissen Global Co., Ltd.

On September 8, China Railway Special Freight Co., Ltd., a subsidiary of China State Railway Group, was successfully listed on the Main Board of the Shenzhen Stock Exchange.

On September 28, SF Holding completed the acquisition of a 51.5% stake in Kerry Logistics.

On October 8, Jiangsu Guoxin Huaxia, the parent company of Nezha, announced that it had officially taken over the management of Suer Express and would begin operations in phases starting in mid-October.

On October 29, Best Inc. and J&T Express jointly announced that they have reached a strategic cooperation agreement, under which Best Inc. has agreed to transfer its domestic express delivery business to J&T Express for approximately RMB 6.8 billion (equivalent to USD 1.1 billion).

On November 11, Aneng Logistics was listed on the Main Board of the Hong Kong Stock Exchange.

On November 12, Weitian Yuntong, the parent company of Luge, officially filed its prospectus with the Hong Kong Stock Exchange.

On November 26, Fengyi Technology, the last-mile delivery drone company under SF Express, announced the completion of a hundreds-of-millions-yuan Series A funding round.

Effective December 8, the operational and management control of the aviation‑focused enterprise undergoing strategic investment has been officially transferred to the strategic investor, Liaoning Fangda Group Industrial Co., Ltd.

On December 14, SF Same-Day Delivery was successfully listed on the Hong Kong Stock Exchange.

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A review of the above events reveals that financing and mergers and acquisitions have become Key takeaways from 2021’s capital‑driven developments in the logistics sector: On the one hand, scaling up, strengthening, and optimizing operations hinges on robust financial backing; on the other, investors’ keen market sense has identified numerous companies and business models worthy of investment in this multi‑trillion‑dollar industry.  

Overall, the leading companies in China’s logistics sector are large-scale and enjoy firmly established market positions, while the revenue gap between the top players and the lower‑tier firms is pronounced, with intense competition among the latter. Moreover, as new entrants continue to join the industry, market competition has intensified further during the pandemic. Under the fundamental market principle of survival of the fittest, mergers and acquisitions have become an inevitable trend.

Replenish ammunition Fierce competition in the local market

Data released by the National Bureau of Statistics of China show that China… In the first three quarters of 2021, GDP growth rates were 18.3%, 7.9%, and 4.9% year on year, respectively, as pressure to ensure stable economic growth has gradually intensified. Meanwhile, the recently held Central Economic Work Conference identified that China’s economic development is confronting triple pressures: shrinking demand, supply shocks, and weakening expectations.

As an important component of the national economy and a vital artery and foundational industry for economic development, the logistics sector has experienced rapid growth, driven by the steady increase in China’s gross domestic product. Data indicate that, From January to October 2021, the total value of national social logistics reached RMB 261.8 trillion, up 10.5% year on year in comparable terms. This growth rate was 8.0 percentage points higher than the same period last year, with an average annual increase of 6.5% over the past two years.  

Despite the fact that China’s economy has continued to grow amid unprecedented global changes and the ongoing pandemic, mounting pressures necessitate an accelerated pace of industrial transformation and upgrading to achieve high-quality economic development. As a labor-intensive sector, the logistics industry generally relies on traditional, low-end operational models, with severe product‑service homogenization, leading to relentless price wars and a fiercely competitive red‑ocean environment.

For companies deeply entrenched in the logistics industry, carving out a competitive edge in an intensely saturated market requires not only refining products and services and vying for market share, but also cutting costs, boosting efficiency, and enhancing profitability. Whether it’s competing on business models, talent, branding, or core competencies, what enterprises need most in this war without gunfire is financial backing. Consequently, companies are rushing to go public, with firms operating in the same-city delivery sector standing out particularly prominently.

For example, SF Same-City Delivery in On December 14, the company listed on the Hong Kong Stock Exchange, but its share price plummeted below the IPO price on the first day, closing at HK$14.9—a 9.26% decline. According to SF Same‑Day Delivery’s prospectus, from 2018 to 2020, the company’s revenue per order was RMB 12.45, RMB 9.98, and RMB 6.37, respectively, while the corresponding cost per order stood at RMB 15.35, RMB 11.57, and RMB 6.61. Although the cost per order fell sharply, revenue declined in tandem, leaving costs unmet and making losses inevitable. The prospectus further reveals that from 2018 through May 2021, SF Same‑Day Delivery accumulated losses exceeding RMB 1.9 billion.  

On June 22, Manbang Group’s stock surged upon its NYSE debut, closing at $21.50—up 13.16% from its IPO price. According to the company’s unaudited third-quarter financial results, Manbang reported total revenue of RMB 1.24 billion, a year-over-year increase of 68.9%. In the quarter, the company’s gross transaction value (GTV) reached RMB 67.3 billion, up 48.8% year over year, while the number of fulfilled orders totaled 35.3 million, a 78.4% year-over-year rise.

SF Same‑Day Delivery, which is already listed, continues to post losses, while Kuagou Dache, seeking a Hong Kong IPO, has also been unable to break free from the cycle of losses. Notably, Huolala… In 2021, reports of an IPO surfaced four times, but Huolala has remained cautious in response to these rumors.

On August 27, Kuagou Dache filed its prospectus with the Hong Kong Stock Exchange, seeking a mainboard listing. Prior to the IPO, in July, the company had already raised nearly US$100 million, yet this funding was still insufficient to cover its losses for 2020. According to the prospectus, Kuagou Dache’s operating revenues from 2018 through the first four months of 2021 were RMB 453 million, RMB 548 million, RMB 530 million, and RMB 193 million, respectively. During the same period, its net losses amounted to RMB 1.071 billion, RMB 184 million, RMB 658 million, and RMB 253 million, totaling RMB 2.166 billion, with losses continuing to widen.

When the same-city instant delivery market was just emerging, numerous companies—including Huolala, Kuagou Dache, Supaidi, and Lanxin Niu—entered the scene one after another, and after a period of… Following the “burn‑money” battle, many companies have exited the market one after another. Yet for every exit, new players have stepped in. SF Same‑Day Delivery, Didi Freight, Manbang’s “Yunmanman,” and, more recently, Meituan’s “Zhuolu”—which has entered beta testing—have all reignited a fresh round of competition. Unsurprisingly, capital is the driving force behind this rivalry.

Capital exhibits the Matthew effect. Industry consolidation is accelerating.

The emergence of the COVID‑19 pandemic has had a significant impact across all sectors. While brick-and-mortar businesses have suffered heavy losses, online operations, on the other hand, have benefited because… The emergence of “contactless” new‑retail models has led to a surge in demand. Unsurprisingly, the logistics sector—closely tied to e‑commerce—has begun to accelerate its reshuffling.

Even before the pandemic, a capital winter had already set in, and the small‑ and medium‑sized, fragmented logistics sector had entered a phase of ruthless consolidation. During the crisis, logistics companies faced both the risk of cash‑flow disruptions and mounting operating costs. In this process, a wave of firms with weak operational capabilities, limited access to financing, and strained liquidity successively collapsed.  

In the vast express‑delivery market, competition is particularly fierce. Recently, J&T Express acquired Best Inc.’s domestic delivery business. In recent years, compared with SF Express and the “Tongda” network, Best Inc.’s growth has lagged somewhat; its acquisition by J&T Express thus represents another viable path forward.

Another player eager to grab a share of the express‑delivery market is Nezha Express, but its efforts to launch a delivery network have been fraught with setbacks, and its application for an express‑delivery license has been met with rejection. “Three consecutive rejections.” Meanwhile, the national express delivery business operating license held by Suer Express, which is currently undergoing bankruptcy restructuring, has become a highly coveted asset in the eyes of Nezha Express. On October 8, Jiangsu Guoxin Huaxia, Nezha’s parent company, announced that it had officially taken over the management of Suer Express. , and in Operations will commence gradually in mid-October.

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Whether it’s an IPO or an acquisition, for companies growing under any business model, capital is merely the icing on the cake—and the logistics sector is no exception. After all, capital is a double-edged sword: used wisely, it can supercharge growth; misused, it can spell disaster. Indeed, in recent years, many logistics firms have found themselves weighed down by excessive reliance on capital—only when they can thrive post‑investment can they truly be said to be doing well.

Securing capital is only the beginning; the road ahead is still long.  

In 2021, the logistics industry witnessed rapid and remarkable progress. Let’s look forward to the sector reaching new heights once again!